Thread Options
#1639305 - 12/15/11 02:20 PM CTR Cashed Check for Employee Bonuses
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Probably a stupid question, but my brain is just not clear this close to Christmas....

We have a business customer who presented a check payable to cash. The cashed check transaction is CTR reportable. It was cashed by one of the owners, who stated that the cash was for Christmas bonuses for their employees. Who would I list in section A? Do I treat this like a cashed payroll check and report the owner in section A? Or do I report the business entity in section A since we have knowledge that the funds are being used to pay employees (an expense of the business)?

Thanks for any help with this.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top
BSA/AML/CIP/OFAC Forum
#1639334 - 12/15/11 02:39 PM Re: CTR Cashed Check for Employee Bonuses Dani York, CRCM
BC78a Offline
Gold Star
BC78a
Joined: May 2006
Posts: 311
New York
If it was the check drawn of the business, I would report the business. If it was the owner's check I would report the owner.
_________________________
___
Just my opinion for what it is worth

Return to Top
#1639338 - 12/15/11 02:55 PM Re: CTR Cashed Check for Employee Bonuses BC78a
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 3,959
New York City
We have a few business entities who do similar types of transactions. Like BC suggested, I list the business entity in Section A. OCC was fine with it.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#1639362 - 12/15/11 03:16 PM Re: CTR Cashed Check for Employee Bonuses ACBbank
Y'all Comply Offline
100 Club
Y'all Comply
Joined: Aug 2010
Posts: 214
Land of Pears
We have business customer that do the same every December. I agree with BC78a and ABCbank.
_________________________
CRCM, CAMS - Be Grateful!!

FKA Jenabq

Return to Top
#1639397 - 12/15/11 03:33 PM Re: CTR Cashed Check for Employee Bonuses Y'all Comply
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
That's where I was starting to lean, but needed some confirmation. Thanks so much!
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top
#1640315 - 12/16/11 09:38 PM Re: CTR Cashed Check for Employee Bonuses Dani York, CRCM
AquaMarine Offline
100 Club
Joined: Jun 2011
Posts: 156
New York, NY
Filing a CTR in this case is straightforward. But, would you file a SAR on the customer for trying to pay his/her employees in cash? Something to ponder about..
_________________________
"Give thanks in all circumstances; for this is God's will for you in Christ Jesus." -Thessalonians 5:18


Return to Top
#1640590 - 12/19/11 05:22 PM Re: CTR Cashed Check for Employee Bonuses AquaMarine
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
I think that you may be overly suspicious. It's still pretty common for businesses to provide Christmas bonuses in cash, and for the most part they take care of appropriate tax reporting, etc. Call me old-fashioned (I've got the "old" part covered anyhow), but there's something about cash that's just so much more "warm and fuzzy" than a check or direct deposit. wink

I'd need to see some evidence there's something amiss before I'd get concerned over cash bonuses.

Or did you have your tongue planted in your cheek?
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1640629 - 12/19/11 06:16 PM Re: CTR Cashed Check for Employee Bonuses Dani York, CRCM
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
I agree with John. In this case, we know the customer, have several accounts, and have seen their books. They are properly account for taxes on paystubs even though the bonus is given in cash.

On a personal note, I have worked for employers who gave cash bonuses. They included the full amount in the YTD pay, but did not withhold. Tax payments on the bonuses were the responsibility of the employee at tax time (basically the tax refund, if any, was reduced by any tax due on the bonus since the bonus was listed on the w-2).
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top

Moderator:  Andy_Z